Beazer Homes USA — already the subject of a criminal fraud investigation says it’s now the subject of a formal Securities and Exchange Commission inquiry.

Beazer revealed no further details of the investigation, but the Charlotte Observer said the inquiry was opened shortly after the newspaper reported that several customers who bought homes in 2001 were paid for answers on customer satisfaction surveys. The survey results were used in determining bonuses for company executives, the paper said.

Beazer, which first revealed the existence of an informal SEC inquiry on May 3, said in a filing Monday that the company received a formal order of investigation on July 20.

A criminal investigation of Beazer by the FBI, IRS and HUD, also followed reports in the Observer, which in a series of stories published in March alleged that at least 388 of the 2,900 homes built by Beazer in Mecklenburg County, N.C., between 1997 and 2006 have foreclosed. The stories alleged some of the company’s lending practices appeared to have violated federal rules.

The U.S. Attorney’s Office for the Western District of North Carolina in March issued a grand jury subpoena seeking documents related to the company’s mortgage origination practices.

Former chief accounting officer and senior vice president Michael T. Rand was fired last month for allegedly attempting to destroy documents in violation of company policy.

Show Comments Hide Comments


Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription